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Confused with this latest RNS. Loan deadline was today. The RNS states discussions have been had but does not confirm if it has been extended leaving shareholders in the dark. And why leave it untill the last date to update the market. The naysayers are going to have a field day.
MAA86 - that's not quite what they said:
"the Company is pleased to report that discussions have been held regarding the extension of the loan facility to coincide with the anticipated finalisation of the main financing. The Company will make an announcement as soon as these arrangements are finalised."
The agreement is that the loan has been extended to coincide with the finalisation of the main financing. Whenever that would be. This is a good thing. In addition, the lender would then not expect, imo, the financing timeline to be longer than the extension already given (from 28 feb to today). And as at that point the extension thought 19th April acceptable, then surely we are within a relatively short amount of time for the project financing, especially as no next date has been given..
Also if you look at the August 2023 RNS it did say it would b repaid as part of the main financing package in any event.
Good to go from here imo.
So to clarify - the FSDEA were not expecting to be paid back today but at point of main financing (which I assume in Feb was thought to be completed by today), subject to some further detail probably, and have agreed to this in principle (probably some extra interest payment or some such no idea).
Sorry 27th June 2023 RNS not August (did it from memory):
"FSDEA has agreed to provide an initial US$15 million loan facility as part of a US$80 million investment (which is subject to due diligence and the finalisation of investment terms) and which will be repaid out of the larger facility, for the US$200 million staged development. "
So, in any event, the FSDEA are not expecting to be paid back until the main financing is completed. Hence, imo, FSDEA have agreed to this extension during those discussions.
Happy to hear opposing theories...
FSDEA loan to be repaid as part of the equity deal which is included in main financing. If main financing does not land then FSDEA will not release more equity and in theory can then seize the asset to cover the £15m loan. A bit worrying but that's my understanding.
MAA86 - what % chance are you attributing to that scenario? For me it is
Gah. '< < 1 %' meant the entire string got erased. Awful site this. cut the rest of my answer too. one sec
MAA86 - what % chance are you attributing to that scenario? For me it is much less than 1%.
The financing is just the $120m, right, as $80m (inc $15m) already comes from the FSDEA:
"ABSA Bank has been mandated to arrange a US$120 million project debt facility which together with the US$80 million funding will fund the mine and processing facilities into production."
Appreciate it's been going on for 9 months, however this isn't a back of the envelope agreement it's a serious one with likely many layers of governance, legals, politics and so on.
Today's RNS, for me, solidifies the timeline of this financing to within 7-8 weeks (period from 28th Feb-19th April), likely much less than that because it is rare that a 2nd extension is longer than the first extension.
So that puts us what, between say next week and the end of May for the finalising (as stated in todays RNS).
Almost there.
Difficult for me to determine a percent as the company has been so vague. At the moment it is a high possibility as today's RNS does not confirm an extension or main finance.
Ah ok - which bit of vagueness in particular? timelines? I think today has helped with those. Agree this is not a main financing announcement, but an update on what would otherwise have been a loose end no doubt detractors would have whined about. It is good an update on the status of this was presented in a timely manner.
Qusetion: Why are you fixated on there needing to be a specific end date for an extension? 27th June 2023 stated it would be paid back as part of the main financing because the 15m is part of the whole capex - so on main financing I assume the FSDEA stumps up the remaining $65m and then ABSA stumps up the $120m (I assume both in tranches based on whatever agreed development timelines). So this main financing, as the timeline is uncertain for completion, means it couldn't have been set in stone anywhere. Initially 8 months. then 9 1/2 months, now what, 11 months end of May? ABSA Bank is not in Angola and is separate, so probably even more due dilligence required than if it was using a bank in Angola.
Anyway, spent enough time thinking about this and how it affects my investment. Will await finalisation of main financing.
The FSDEA, bluntly, is financing the $15m of works currently underway - which is an improvement in the infrastrcuture of Angola. It's a win/win. It's also hard to believe the FSDEA would let this project fail by not stepping in if needed.
I just find it hard to believe that the FSDEA (Angola Sovereign Wealth Fund) puts in $80m and that ABSA Bank (Amalgamated Banks of South Africa) would never finance the remaining (reduced) capex requirement of $120m.
I assume FSDEA not financing the whole due to risk management. Why need to if you can get another bank to - then you can lend your money out to do other things. Are they not already financing some $89m powerline upgrade or something?
Agree nonbinding is toilet paper. Surely that's not what is coming. Problem is all these mining stocks is they need the financing. Until then. doesn't matter what news, it's undervalued these days compared to what it would be in the past.
MyIPA - I actually agree with a lot of what you have said so thank you for your contribution.
Admit I have become fixated on today's RNS as I would have expected a confirmation of an extention rather than a discussion. But as you say, the timellines suggest otherwise.
Anyhow, let's hope we speak again soon with some positive news.